Can I Buy a House While Going Through a Divorce?

Going through a divorce is a challenging process and it may become more complicated if you are considering purchasing a house during this time. In Arizona, a community property state, the legal and financial implications of buying a home while divorcing are significant. Get legal representation from an experienced divorce dispute lawyer in Arizona to achieve the best possible outcome for your divorce and other family law issues, such as property division, child custody, child support, and spousal maintenance.

Legal Implications of Buying a House During Divorce

Community Property vs. Separate Property in Arizona

Arizona follows community property laws, which means that most assets acquired during the marriage are considered jointly owned by both spouses. This includes any property purchased while the divorce is pending, even if the intent is to keep it separate. For a new home to be classified as separate property, it must be acquired with funds that are clearly distinguishable as belonging solely to one spouse, such as an inheritance or assets obtained before the marriage. However, proving this can be challenging and may lead to legal disputes.

How Divorce Proceedings in Arizona Can Affect Home Buying

During the divorce process, the court has the authority to issue temporary orders concerning the management of marital property, which could impact your ability to purchase a home. For instance, if joint funds are involved, both spouses must typically agree on significant financial decisions, including buying a house. Additionally, the court may view the purchase as an attempt to shield assets, potentially complicating the division of property.

Financial Considerations

Credit Score Impact

Divorce can affect your credit score, especially if joint debts are not managed properly. Missed payments, high balances, or defaulting on loans can lower your score, making it more difficult to secure a mortgage with favorable terms. Ensuring that all joint debts are paid on time is vital to maintaining your creditworthiness during the divorce.

Joint Debts and Liabilities

In Arizona, joint debts incurred during the marriage are typically considered community liabilities. When purchasing a new home during divorce proceedings, these liabilities must be accounted for, as they could affect your mortgage approval and financial stability. Both spouses are usually responsible for joint debts until they are paid off or legally assigned to one party in the divorce settlement.

Steps to Buying a House During an Arizona Divorce

Consult with Your Attorney

Before making any major financial decisions during or prior to a divorce proceeding, such as buying a house, consult your divorce attorney. They can provide legal guidance on how this purchase may affect your divorce proceedings, ensure compliance with Arizona’s community property laws, and help you avoid potential legal pitfalls.

Assess Your Financial Situation

Carefully evaluate your financial situation to determine if buying a house during your divorce is feasible. Consider your income, existing debts, credit score, and potential alimony or child support obligations. A thorough assessment will help you understand whether you can afford a new home and if it aligns with your long-term financial goals.

Obtain an Independent Property Appraisal

If you decide to move forward with the purchase, obtaining an independent property appraisal is essential. This appraisal will establish the home’s fair market value, which can make a difference if the property is later considered in the divorce settlement. An accurate appraisal directly from a professional appraiser or through a real estate agent ensures that you are not overpaying for the property and protects your financial interests.

Impact on Divorce Settlement

Division of Marital Assets

Buying a house or making a down payment and taking on a home loan to buy the property during a divorce can complicate the division of marital assets in Arizona. The court may consider the new property as part of the marital estate, potentially affecting how assets are divided between you and your spouse. The court approval process could lead to adjustments in the distribution of other assets or liabilities to achieve a fair settlement in a divorce or a legal separation agreement.

Impact on Spousal Maintenance and Child Support

Purchasing a home during divorce proceedings may also impact spousal maintenance and child support payments. The court will consider your financial obligations, including mortgage payments and your debt to income ratio when determining the appropriate amounts for spousal maintenance and child support. If the new home increases your financial burden, it could influence the court’s decision regarding support payments.

Benefits and Risks

Potential Benefits of Stability and Security

One potential benefit of buying a house during a divorce is the stability and security it can provide, especially if you have children. Establishing a new residence can help create a sense of normalcy during a tumultuous time. Moreover, purchasing a home could be a sound financial investment, particularly if the housing market is favorable.

Possible Financial and Legal Risks

However, there are significant financial and legal risks associated with buying a home during a divorce. The purchase could strain your finances, especially if unexpected costs arise. The new property might also become entangled in the divorce settlement, leading to disputes and legal challenges. Furthermore, if the court views the purchase as an attempt to hide assets, it could result in unfavorable rulings.

Case Studies and Hypothetical Scenarios

John and Lisa’s Divorce

John and Lisa are in the middle of a divorce in Arizona. John decides to buy a house before the divorce is finalized, thinking it will be his separate property. However, because Arizona is a community property state, Lisa’s attorney argues that the new house should be considered a marital asset, leading to complications in the property division. This scenario highlights the risks of making major purchases without legal guidance during a divorce.

Emily’s Financial Dilemma

Going through a divorce, Emily considers buying a home to provide stability for her children. However, her credit score has taken a hit due to joint debts with her soon-to-be ex-spouse. Divorce lawyer Cosmas Onyia advises her to hold off on purchasing a house until the divorce is finalized and her financial situation improves. This guidance prevents Emily from taking on a financial burden that could jeopardize her future.

David’s Safe Move

David consults with family law attorney Cosmas Onyia before buying a house during his divorce. After evaluating David’s finances and legal situation, Mr. Onyia helps him structure the purchase in a way that protects his interests, ensuring the property remains his separate asset. David successfully acquires the home without complications in the divorce settlement.

Get a Trusted Arizona Divorce Attorney on Your Side

If you are facing a divorce or another family law issue in Phoenix, AZ, and need a seasoned attorney who will fight for your rights with compassion and dedication, look no further than The Law Office of Cosmas Onyia. With over 25 years of experience and a proven track record, attorney Cosmas Onyia is strongly positioned to achieve the most favorable outcomes you seek from your case and protect your financial future. 

Mr. Onyia offers personalized guidance and strong legal representation, ensuring that your case is handled with the utmost care and skill. Reach out to us today and let us help you overcome this challenging time with confidence and support. To schedule your free consultation, call us at 602-265-5200 or contact us online.